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Updates About the Concordia Retirement Plan |
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The impact of the economic downturn and recession for 2008 and 2009 weighs heavy on the minds of many individuals, churches, and other organizations. It is normal to worry about our financial future and retirement.
Concordia Plan Services wants to make sure plan members and participating employers are kept up to date regarding the status of the Concordia Retirement Plan (CRP). We have dedicated this Web page as a place where interested individuals can easily access key messages shared periodically about the Plan.
Below are the major communications we have issued to date
which contained important information about the CRP and/or the strategies and practices in place with the Concordia Plan Services Board of Directors, leadership team, and staff around managing the Plan:
Managing Pension Investments in Turbulent Times (9/08)
Concordia Plan Services 2008 Annual Report (10/09)
Letter from Concordia Plan Services President Jim Sanft to all participating LCMS Employers announcing the 2010 Concordia Retirement Plan Rates (7/09)
Letter from Concordia Plan Services President Jim Sanft providing an update on the Concordia Retirement Plan to:
Delivering on our Promises (Fall 10/09)
Concordia Retirement Plan Update (Fall 2009)
Message from the President (Fall 2009)
Delivering on Our Promises (Employer Bulletin Fall 2009)
We understand that times of uncertainty cause concern. And, we know that both the current and future benefits provided are important to LCMS employers, church workers, and retirees.
That’s why we are dedicated to doing what it takes to deliver on promises made.
You can find solace in the fact that your retirement funds, as well as other benefits, are managed with a disciplined approach. Concordia Plan Services staff does not work alone; we partner with top investment managers and business consultants. Their professional guidance—along with that of our experienced board members, prudent policies, and commitment to our fiduciary responsibilities—help to ensure we make the appropriate decisions when required.
During difficult economic times, difficult decisions need to be made. The very difficult decision to raise contribution rates for the Concordia Retirement Plan (CRP) is an example. Another example is the fact that current CRP beneficiaries will not be receiving benefit increases in 2010. These decisions were not made because the Plan is in any current danger of being unable to meet its obligations; instead, they represent prudent measures taken to secure long-term funding stability.
We will continue to share periodic updates about the CRP with you throughout the year.
Concordia Retirement Plan Update (Employer Bulletin Fall 2009)
Concordia Plan Services, like you, is very concerned about the care for church workers both in their active ministries and when they retire. Our goal is to provide peace of mind that allows the worker to focus on the ministry.
Our collective peace of mind was challenged this past year as economic events caused a downfall in public and private assets worldwide. The Concordia Retirement Plan was not immune; our assets in 2008 through March 2009 declined about 30%.
Although this was a big jolt, it’s important to keep perspective. The CRP was in a strong position heading into the economic downturn. Over long periods of time CRP assets have exceeded the 8% expected actuarial return, primarily due to our long-term investing philosophy. We know we must accept a certain level of investment risk and related volatility to achieve progressive returns.
As confirmation, the CRP assets have responded positively in market gains the past few months. That encouraging news will be supplemented by the 1% increase in the CRP contribution rate effective January 1, 2010, as announced this past July. The increase will strengthen the long-term funding status of the CRP while it continues to recover.
Market cycles present an opportunity to evaluate our strategic thinking around contributions, benefits, and risk. Rest assured that our Board of Trustees, investment managers, consultants, leadership team, and staff continually assess these key components of our Plans and will work diligently to make appropriate, measured responses that place the Plans in the best position to deliver on the promises made to members.
Greetings from the President, Concordia Plan Services (Employer Bulletin Fall 2009)
What a difference a year can make. Last year the world watched in wonder as each new day brought more news of economic woes. Of course it was not just an economic crisis for the United States, but the entire world was impacted.
History shows us that there are economic cycles—some declines are deeper, and some last longer, than others. The Old Testament story of Joseph shows a cycle of seven years of plenty followed by seven years of famine—an economic cycle!
The story of Joseph is a good reminder of the fact that in order to survive the famine, you have to be a good steward during the time of plenty.
Although the effects of the recession continue to be felt, there is good news on the economic front. The “leading indicators” are heading in the right direction; the financial markets are showing signs of recovery.
As the economy improves it is important that the Concordia Plans remain fully invested in the markets. And it is critical that the assets of the Plans be invested in a diversified portfolio that includes U.S. and international equities, bonds, private equities, and real estate, which is in keeping with our long-term investment strategy.
History has shown us that economic recovery follows periods of economic decline. It is crucial that the assets of the Plans get rebuilt so that like Joseph, we can withstand the next economic downturn.
As we continue to work through these challenging times, we encourage plan members to become actively involved in their own retirement and financial planning. This issue of the Bulletin focuses on retirement planning and on some of the benefits and resources that employers and plan members should keep in mind.
We also encourage you to visit our website for more details on the Concordia Retirement Plan, the Concordia Retirement Savings Plan, and the Concordia Health Plan—including the Concordia Health Plan Medicare supplemental coverage option. Be sure to check out the “Who am I” section where you can find a collection of topics geared for you. And keep in mind that Concordia Plan Services is available to provide personal financial education and retirement planning seminars at district conferences or worker gatherings.
It is a goal of Concordia Plan Services to provide our plan members with a variety of resources that go beyond just providing benefits by also providing education so that plan members are equipped to make good choices as they, too, struggle with the effects of the recession.
May God bless us all with knowledge and wisdom to make good stewardship decisions regarding the resources that He has put under our charge as we work to advance His kingdom!
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